Skip to main content
Canada’s most-awarded newsroom for a reason
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
Canada’s most-awarded newsroom for a reason
$1.99
per week
for 24 weeks
// //

A Telus store in downtown Toronto on July 15, 2013.

Gloria Nieto/The Globe and Mail

Telus Corp. is assuring investors it will have no problems funding its dividend growth model and share buyback program even if U.S. telecom giant Verizon Communications Inc. is able to enter Canada under Ottawa's current wireless policy.

Canada's No. 3 carrier is not backing down on its fight to convince the federal government to close so-called loopholes in its wireless rules that incumbents claim would give Verizon "unfair" advantages in the Canadian market.

But CEO Darren Entwistle says he is comfortable with Telus's ability to support its dividend growth model, which targets growth of 10 per cent a year until 2016, and its $2.5-billion share repurchase program – no matter the outcome of that regulatory battle.

Story continues below advertisement

"In terms of why, I think we're exceedingly strong when it comes to brand and distribution," Mr. Entwistle told investors Thursday.

Telus, he added, has a "great asset composite" and is enjoying growth in wireless, wireline and health-care divisions.

"I like our competitive positioning because of what we can do on wireless and wireline bundling … and the economic benefits of that are extremely laudable," said Mr. Entwistle, also pointing to the company's balance sheet strength.

On that point, Drew McReynolds, a telecom analyst with RBC Dominion Securities Inc., noted that Telus had a second-quarter ratio of 1.7 times net debt to earnings before interest, taxes, depreciation and amortization.

"Management indicated it would remain aggressive with the [share buyback] (16.5 millions share repurchased from May through July for $536-million) given balance sheet strength and synergistic benefits with the dividend policy and taxation," wrote Mr. McReynolds in a research note to clients on Friday.

Mr. Entwistle, however, also stressed Telus's ability to control costs.

"We have a heritage on the cost-efficiency front," he said. "So what the market takes out of our profit lines, we'll put back through improved – continuous improvements in cost efficiency. So when you put all those together, I think we're in a pretty powerful position."

Story continues below advertisement

Return to Streetwise home page.

The Globe has launched a Streetwise and ROB Insight newsletter, with content available exclusively to Globe Unlimited subscribers. Get the best of our exclusive insight and analysis delivered straight to your inbox in a daily e-mail curated by our editors. Sign up for it and other newsletters on our newsletters and alerts page.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies